If you are an importer who is simply looking for a platform to open your LC, Trafin opens the LC for you against a certain service fee. In terms of shariah, this arrangement is referred to as Ijara tul Ashkhaas, where in a fee is paid to the service provider for rendering certain services.
If you do not require funding for your imported goods/ assets, Trafin simply acts as a channel through which you make the payment to the exporter at the time of LC retirement. However, if you had requested for the LC to be funded at the time of LC opening, at the LC retirement date, Trafin retires the LC by making payment to the exporter.
At times, exporters need funds to purchase the raw material required for manufacturing. If you require financing for procuring inputs in order to produce the goods to be exported, Trafin will procure the goods of your choice for you and sell it you through the Murabaha financing on a deferred payment basis leaving you with no worries in meeting your manufacturing targets.
Trafin understands that as an exporter, you may need to finance a variety of needs related to your manufacturing requirements. Through Istisna Financing, Trafin assists you by paying you upfront for acquiring the goods to be delivered against a certain Purchase Order. Once the good are produced and transferred into Trafin’s ownership, Trafin appoints you as its agent to export the goods on its behalf.
In Currency Salam, upon your presentation of the Bill to Trafin, Trafin keeps the Bill as its security and enters to a Salam contract with you as per which it purchases the Foreign Currency from you (to be delivered at the Bill maturity date) against Canadian Dollars to be paid on spot.